Watchdog gets powers to name and shame businesses refusing to engage in reasonable dispute resolution

Claire Heaney
December 10, 2013
Herald Sun

VICTORIA’S small business watchdog will get new powers to name and shame businesses refusing to engage in reasonable dispute resolution, under a State Government push.

Under a draft amendment introduced into State Parliament on Tuesday night, the Small Business Commissioner will be able to out big businesses and Government agencies “unreasonably refusing” to enter into the spirit of alternative dispute resolution.

The move is aimed at widening options for small businesses who don’t have the cash to take on the big players.

Small Business Minister Louise Asher said the Small Business Commissioner Amendment Bill 2013 would provide the commissioner with the power to assist small business to resolve disputes with businesses, councils, government departments and agencies.

Previously, the legislation was silent on government although the commissioner has been involved in a small number of disputes relating to the sector.

Ms Asher said the Government had opted for a “name and shame” approach rather than a fine.

Businesses to be named in the commissioner’s annual report will have to “show cause” as to why they are not outed and potentially embarrassed.

Ms Asher said the amendment also sought to extend the commissioner’s jurisdiction beyond disputes involving “unfair market practices to include investigations and dispute resolution covering commercial dealings.”

The existing mediation functions will be beefed up to include a broader range of resolution services such as conciliation, assisted negotiation and facilitated meetings.

Small Business Commissioner Geoff Browne said the amendment would affect approximately 350 of the 1700 disputes coming to the office each year.

The commissioner’s operations are covered by four acts of Parliament, covering issues such as retail tenancies.

Mr Browne said if parties refuse to engage in “reasonable” dispute resolution efforts the office would have the power to issue a certificate declaring their unwillingness.

He said the certificate and naming in the annual report would not be desirable for businesses.

Mr Browne said the majority of disputes dealt with rental tenancies which are not covered by the amendments.

Ms Asher said Victoria was the first state to appoint a small business commissioner.

The Federal small business commissioner Mark Brennan was the first Victorian commissioner.